Is there a problem using account codes with Vt Transaction + as they recommend that you do not use them in there Company set - Up menu Page.
How do accountants handle info without codes after down loading for final accounts. Would it not consume a lot more of the accountans time not having them
The problem with codes is that too many people use the wrong ones, or put them in the wrong place!
They just add another complication to accounts, especially when people don't know where they should be! Different accounting pacages use different codes which make them incompatable with each other.
Before computers Accountants did not use codes. Personally I'd rather not use them, accounts would be a lot simpler when they are not used so would actually save time.
If we had to do accounts without computers we would not use codes.
Hello Frauke Thanks for your reply. What you say makes a lot of sense after having a look at quite a few different chart of accounts . I suppose it is a case of horses for courses. If your accountant has his own set codes that he is familiar with then he would want you to use them. Personally I would prefer not to use them for my part of the accounting process. I would like to have the view of a few more Bean Counters if they would be so kind to add their comments
There's not a particular problem with not having account codes. If the client is not using bookkeeping software, they wouldn't normally have account codes at all. If the client is using different software from their accountant, they might not have the same nominal codes anyway.
If the accountant is using software to produce the accounts & tax return, they'd have to map the nominal accounts used in the client's bookkeeping software to the relevent codes or accounts in their accounts production software. Normally, it doesn't take that long and isn't a big problem.
If the records are manual or incomplete, then the figures might be entered into accounts production software as journals (again, no need for account codes in the original bookkeeping)
Accountants in practice are normally used to receiving records in various stages of completion/quality - unless they've encouraged all their clients to use only one type of software, of course, and never take "incomplete records" jobs.
Incidentally, Sage Instant/50 and Sage Accounts Production use different codes (although there is an automatic mapping process for the "core" chart of accounts).
